DBRS Downgrades Two Classes of Wachovia Bank Commercial Mortgage Trust, Series 2004-C15

DBRS Limited (DBRS) has today downgraded the rating of the following classes of Commercial Mortgage Pass-Through Certificates, Series 2004-C15 (the Certificates) issued by Wachovia Bank Commercial Mortgage Trust, Series 2004-C15 (WBCMT 2004-C15 or the Trust):

-- Class H to D (sf) from C (sf)
-- Class J to D (sf) from C (sf)

In addition to the rating actions above, DBRS has removed the Interest in Arrears designation on Class H and Class J.

The rating downgrades are the result of the most recent realized losses to the trust, which occurred after one of the few remaining loans in the pool, the Gale Office Pool (Prospectus ID#4) loan, was liquidated from the trust at a loss of $10.8 million, with the May 2016 remittance. The Gale Office Pool loan was secured by four office properties throughout northern New Jersey and the loan transferred to special servicing for maturity default in August 2014. The lender dual tracked foreclosure, along with alternative workout strategies that included a potential discounted payoff, but it is not clear how the loan was ultimately resolved. The last reported property valuation dated December 2015 valued the pool at $57.2 million, down from $89.6 million at issuance. With the May 2016 remittance, the loan showed principal repayment of $52.0 million, resulting in a loss severity of 17.2% at disposition from the trust. The trust loss wiped the remaining balance on Class K and Class J and reduced the principal balance on Class H by 15.2%. As of the May 2016 remittance, three of the remaining six loans are in special servicing, with a cumulative outstanding principal balance of $40.0 million.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are North American CMBS Rating Methodology (March 2016) and CMBS North American Surveillance (December 2015), which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

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